XML 36 R14.htm IDEA: XBRL DOCUMENT
v3.20.1

Income Taxes | 12 Months Ended
--- | ---
Mar. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | 8. Income Taxes The provision for income taxes (income tax benefits) consists of the following for the years ended March 31:
|  | (In thousands) |
|  | 2020 |  |  | 2019 |
Current: |  |  |  |  |  |  |  |
Federal |  | $ | (4,440 | ) |  | $ | (39 | )
State |  |  | 6 |  |  |  | (66 | )
Total current |  |  | (4,434 | ) |  |  | (105 | )
Deferred: |  |  |  |  |  |  |  |
Federal |  |  | 3,008 |  |  |  | (844 | )
State |  |  | 207 |  |  |  | 9 |
Total deferred |  |  | 3,215 |  |  |  | (835 | )
Income tax benefit |  | $ | (1,219 | ) |  | $ | (940 | )
The net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes are reflected in deferred income taxes. Significant components of the Company’s deferred tax assets consist of the following as of March 31:
|  | (In thousands) |
Deferred Tax Assets |  | 2020 |  |  | 2019 |
Allowance for credit losses not currently deductible for tax purposes |  | $ | 2,948 |  |  | $ | 4,431 |
Share-based compensation |  |  | 320 |  |  |  | 276 |
Federal and state net operating loss carryforwards |  |  | 458 |  |  |  | 2,293 |
Right of use liability |  |  | 462 |  |  |  | - |
Other items |  |  | 249 |  |  |  | 201 |
Total deferred tax assets |  |  | 4,437 |  |  |  | 7,201 |
Deferred tax liabilities |  |  |  |  |  |  |  |
Right of use asset |  |  | 457 |  |  |  | - |
Other items |  |  | 71 |  |  |  | 77 |
Total deferred tax liabilities |  |  | 528 |  |  |  | 77 |
Deferred income taxes |  | $ | 3,909 |  |  | $ | 7,124 |
The provision (benefit) for income taxes reflects an effective U.S tax rate, which differs from the corporate tax rate for the following reasons:
|  | (In thousands) |
|  | 2020 |  |  | 2019 |
Provision (benefit) for income taxes at Federal statutory rate |  | $ | 479 |  |  | $ | (845 | )
Increase (decrease) resulting from: |  |  |  |  |  |  |  |
Federal Fiscal Year 2020 NOL rate differential |  |  | (414 | ) |  |  | - |
Federal Fiscal Year 2019 NOL rate differential |  |  | (1,362 | ) |  |  | - |
State income taxes, net of Federal benefit |  |  | 91 |  |  |  | (206 | )
Tax Reform – Rate Change |  |  | - |  |  |  | 160 |
Other |  |  | (13 | ) |  |  | (49 | )
Income tax expense (benefit) |  | $ | (1,219 | ) |  | $ | (940 | )
The Company’s effective tax rate decreased to (54.3)% in fiscal 2020 from 20.5% in fiscal 2019, resulting from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). In response to the global impacts of COVID-19 on U.S. companies and citizens, the government enacted the CARES Act on March 27, 2020. The CARES Act included several tax relief options for companies, which resulted in the following provisions available to the Company.
| • | In May 2020, the Company elected to carryback its fiscal year 2019 net operating losses of $9.7 million to 2013, thus generating a refund of $3.5 million and an income tax benefit of $1.4 million. The tax benefit is the result of the federal income tax rate differential between the current statutory rate of 21% and the 35% rate applicable to 2013.
| • | The Company plans to carryback its fiscal year 2020 net operating losses of $3.0 million to 2014, thus generating an anticipated refund of $1.0 million and an income tax benefit of $0.4 million. The tax benefit is the result of the federal income tax rate differential between the current statutory rate of 21% and the 35% rate applicable to 2014.
Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. A significant piece of objective positive evidence evaluated was the cumulative pre-tax income over the three-year period ended March 31, 2020, cumulative pre-tax income for the next three years, and substantial federal NOL rate differentials, previously noted. As of March 31, 2020, a valuation allowance was not required. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income are reduced. The Company considers the earnings of the Company’s U.S. subsidiaries to be indefinitely invested outside Canada on the basis of estimates that future domestic cash generation will be sufficient to meet future domestic cash needs and the Company’s specific plans for reinvestment of those subsidiary earnings. The Company has not recorded a deferred tax liability related to the Canadian income taxes and U.S. withholding taxes on approximately $144.2 million of undistributed earnings of the U.S. subsidiaries indefinitely invested outside Canada. If the Company decided to repatriate the U.S. earnings, it would need to adjust its income tax provision in the period the Company determined that the earnings will no longer be indefinitely invested outside of Canada.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration